What are your plans for the future? Most people don’t want to spend much time thinking about the future – especially if the future might involve change. Most people hate change! You, however, are not “most people.” You know if you do not prepare for the future, you will more than likely suffer the consequences.
The one thing we know about the future is that it will involve change. Change is inevitable! The present is different from the past, and the future will be different from the present. We must recognize the change that is taking place, and adapt to it as quickly as possible. Doing so will give us a HUGE competitive advantage, because most people fear change and refuse to acknowledge it until it is too late.
Most PCC customers have a plan for the future – and they are getting prepared. They know cattle prices are very volatile. Cattle and beef prices have dropped over 20% in just the last 60 days. I don’t think we have seen the bottom in this cycle. PCC customers also know the cost of producing a calf has been increasing. According to the Livestock Marketing Information Center, the cost of producing a calf has increased from $384 in 2000 to $883 in 2014. Keep in mind that this is an average cost of production. Some cow-calf producers have a much higher cost of production, while others have a much lower cost of production. Many (perhaps most) PCC customers have a cost of production that is half the national average.
Based on what you know about the future, what kind of management and genetic decisions should you be making? Should you do what everyone in the status quo herd is doing? They continue to decrease their production and profit per acre as they attempt to increase production per individual animal. This has created cows that are much too big and inefficient. As cattle prices go down and as the cost of production goes up, they are finding it more and more difficult to break even. Will you follow the status quo herd, or will you make the necessary changes to keep your business profitable and enjoyable in the future? Your kids and grandkids are hoping you make decisions that will prepare your program for the future.
Change is inevitable! Do not fear it! Embrace it, and adapt to it as quickly as possible. Those who are the quickest to adapt and change will have a HUGE competitive advantage over members of the status quo herd. Those who are the slowest to change will probably go out of business. Pharo Cattle Company has the genetics and the philosophies you need to put more fun and more profit into your business – in good times and in not-so-good times. Our customers are the most profitable cow-calf producers in the world.
Quote Worth Re-Quoting –
“It is not the strongest of the species that survives, nor the most intelligent that survive. It is the one that is most adaptable to change.” ~ Charles Darwin